Air Products and Chemicals, Inc. (APD)
NYSE:APD
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Air Products and Chemicals
(NYSE:APD)
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Rating:66Neutral
Price Target:
$327.00
â–²(12.06% Upside)
Action:Reiterated
Date:04/30/26
The score is anchored by mixed fundamentals—strong operating cash generation but recent profit instability and elevated leverage—partly offset by a positive earnings outlook (raised guidance, margin expansion, strong backlog) and constructive technical momentum. Valuation and dividend are supportive but not a major catalyst, while helium and geopolitical/project risks temper the upside.
Positive Factors
Backlog & Contract Wins
A $9 billion backlog plus anticipated $1.5–$2.0 billion of additions and large multi‑phase electronics contracts provide multi‑year revenue visibility. For a capital‑intensive industrial gases firm, contracted backlog underpins asset utilization, phased cash flows and durable earnings contribution.
Negative Factors
Elevated Leverage
Leverage sits above historical levels (debt/equity ~1.18 and net debt/EBITDA ≈2.2x), while ROE is negative in the TTM. Elevated leverage reduces financial flexibility, raises refinancing and interest exposure, and is problematic when capital base is not yet generating positive returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog & Contract Wins
A $9 billion backlog plus anticipated $1.5–$2.0 billion of additions and large multi‑phase electronics contracts provide multi‑year revenue visibility. For a capital‑intensive industrial gases firm, contracted backlog underpins asset utilization, phased cash flows and durable earnings contribution.
Read all positive factors
Air Products and Chemicals Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyAir Products and Chemicals (APD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$65.31B
Dividend Yield2.92%
Average Volume (3M)1.05M
Price to Earnings (P/E)22.8
Beta (1Y)0.69
Revenue Growth3.69%
EPS Growth37.17%
CountryUS
Employees21,850
SectorBasic Materials
Sector Strength58
IndustryChemicals - Specialty
Share Statistics
EPS (TTM)9.45
Shares Outstanding222,680,680
10 Day Avg. Volume1,015,392
30 Day Avg. Volume1,049,625
Financial Highlights & Ratios
PEG Ratio1.40
Price to Book (P/B)4.04
Price to Sales (P/S)5.05
P/FCF Ratio-16.14
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue6.56
Enterprise Value/Gross Profit20.52
Enterprise Value/Ebitda18.77
Forecast
1Y Price Target
$328.43Price Target Upside12.55% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)13.21
Revenue Forecast (FY)$12.75B
Air Products and Chemicals Business Overview & Revenue Model
Company Description
Air Products and Chemicals, Inc. provides atmospheric gases, process and specialty gases, equipment, and services worldwide. The company produces atmospheric gases, including oxygen, nitrogen, and argon; process gases, such as hydrogen, helium, ca...
How the Company Makes Money
APD primarily makes money by selling industrial gases and related supply solutions under a mix of long-term contracts and shorter-cycle distribution sales. A major revenue stream is on-site gas supply, where APD builds, owns, and operates faciliti...
Air Products and Chemicals Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The earnings call conveyed a broadly positive operational and financial performance: material YoY growth in EPS and operating income, margin expansion, a raised full‑year guide, meaningful backlog and large new electronics wins, and disciplined capital allocation with strong shareholder returns. Offsetting these positives are significant near‑term risks driven by the Middle East conflict (notably helium supply disruption and pricing headwinds), project‑level uncertainty (Darrow) and regional cost/run‑rate pressures in Europe. On balance the call emphasized resilience, project progress and prudent financial management while acknowledging key market uncertainties.Positive Updates
Strong EPS and Income Growth
Earnings per share of $3.20, up 19% year‑over‑year; operating income grew 19% YoY driven by improved volumes, productivity and favorable currency.
Negative Updates
Helium Supply Disruption and Pricing Headwind
Curtailment of helium supply from Qatar due to Middle East conflict created market tightness; helium pricing is a notable headwind (company expects roughly a 4% EPS drag in 2026) and average prices were down ~1% YoY. Management is drawing from a Texas storage cavern and using container fleet but notes limited ability to replace market shortfall if disruption is prolonged.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong EPS and Income Growth
Earnings per share of $3.20, up 19% year‑over‑year; operating income grew 19% YoY driven by improved volumes, productivity and favorable currency.
Read all positive updates
Company Guidance
Air Products raised full‑year fiscal 2026 EPS guidance to $13.00–$13.25 (about 8%–10% growth at the midpoint) and expects Q3 EPS of $3.25–$3.35 (≈5%–8% y/y), while maintaining fiscal capital expenditures of roughly $4.0 billion and staying on track to cut capex by about $1.0 billion versus the prior year; management said EPS growth will come from pricing actions, productivity and new asset contributions alongside expected H2 volume improvements in refining, electronics and aerospace, but reiterated a helium price headwind (roughly a 4% EPS drag) with helium likely to bottom by year‑end. Operational and balance‑sheet metrics cited on the call included Q2 EPS of $3.20 (+19% y/y), operating margin of 23.7% (up >200 bps y/y), return on capital of 11.4%, net debt/EBITDA ≈2.2x, an effective tax rate target of ~18%, a ~$9 billion backlog (≈$2.5B traditional industrial gas) with $1.5–$2.0B expected to be added in the next six months, and $800 million returned to shareholders in H1.Air Products and Chemicals Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
52
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.46B | 12.04B | 12.10B | 12.60B | 12.70B | 10.32B |
| Gross Profit | 3.99B | 3.78B | 3.93B | 3.77B | 3.36B | 3.14B |
| EBITDA | 4.36B | 1.34B | 6.49B | 4.42B | 4.22B | 3.97B |
| Net Income | 2.11B | -394.50M | 3.83B | 2.30B | 2.26B | 2.10B |
Balance Sheet | ||||||
| Total Assets | 41.64B | 41.06B | 39.57B | 32.00B | 27.19B | 26.86B |
| Cash, Cash Equivalents and Short-Term Investments | 951.00M | 1.86B | 2.98B | 1.95B | 3.30B | 5.80B |
| Total Debt | 18.36B | 18.41B | 15.01B | 11.03B | 8.33B | 8.22B |
| Total Liabilities | 23.49B | 23.71B | 20.90B | 16.34B | 13.49B | 12.77B |
| Stockholders Equity | 15.65B | 15.02B | 17.04B | 14.31B | 13.14B | 13.54B |
Cash Flow | ||||||
| Free Cash Flow | 1.11B | -3.77B | -3.15B | -1.42B | 303.70M | 877.70M |
| Operating Cash Flow | 4.12B | 3.26B | 3.65B | 3.21B | 3.23B | 3.34B |
| Investing Cash Flow | -5.07B | -6.58B | -4.92B | -5.68B | -3.86B | -2.73B |
| Financing Cash Flow | 379.00M | 2.21B | 2.62B | 1.37B | -1.00B | -1.56B |
Air Products and Chemicals Technical Analysis
Neutral
291.81
Price Trends
293.58
Negative
280.67
Positive
272.11
Positive
Market Momentum
0.58
Positive
43.14
Neutral
15.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For APD, the sentiment is Neutral. The current price of 291.81 is below the 20-day moving average (MA) of 299.95, below the 50-day MA of 293.58, and above the 200-day MA of 272.11, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 43.14 is Neutral, neither overbought nor oversold. The STOCH value of 15.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for APD.
Air Products and Chemicals Risk Analysis
Air Products and Chemicals disclosed 19 risk factors in its most recent earnings report. Air Products and Chemicals reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Air Products and Chemicals Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $234.37B | 30.97 | 18.51% | 1.41% | 4.96% | 9.22% | |
71 Outperform | $19.94B | 29.17 | -0.16% | 1.74% | -22.51% | 63.47% | |
69 Neutral | $70.14B | 43.35 | 21.70% | 1.01% | 4.90% | 0.42% | |
68 Neutral | $74.68B | 36.82 | 58.23% | 0.98% | 3.90% | -1.60% | |
66 Neutral | $65.31B | 22.78 | 13.68% | 2.92% | 3.69% | 37.17% | |
65 Neutral | $23.11B | 15.65 | 31.80% | 2.71% | -3.94% | 18.25% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% |
* Basic Materials Sector Average
APD
Air Products and Chemicals
289.19
26.57
10.12%
ECL
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248.64
-9.63
-3.73%
PPG
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104.39
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SHW
Sherwin-Williams Company
307.70
-43.87
-12.48%
DD
DuPont de Nemours
47.25
19.53
70.45%
LIN
Linde
506.63
57.19
12.73%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.